Key Points
- Gold in Pakistan steadies around Rs 458,000 per tola on June 17 after sharp volatility.
- Prices moved in a wide Rs 40,000 range as Iran conflict risks peaked and then eased following a peace framework.
- Global bullion trends stabilise as falling oil prices and softer rate expectations offset reduced safe-haven demand.
ISLAMABAD: Gold prices in Pakistan remained stable on Wednesday, trading near Rs 458,000 per tola after a volatile fortnight driven by rapid shifts in global sentiment following the end of the Iran war and the announcement of a US-Iran peace framework.
Coinciding with the Iran-US diplomatic breakthrough, Pakistan’s budget 2026-27, under debate in the National Assembly, introduced incentives and tax relief for certain sectors, including construction and impacted local investment patterns.
Local bullion steadies after sharp correction
The domestic bullion market witnessed one of its sharpest short-term swings in recent weeks.
Prices fluctuated between a high of Rs 466,000 per tola on June 2 and a low of Rs 425,800 per tola on June 11, before staging a steady recovery back toward Rs 458,000 by mid-June.
The data reflects a clear transition from crisis-driven pricing to a more balanced market structure. Gold initially eased from Rs 466,000 to around Rs 449,500.
The movement followed as geopolitical tensions peaked, before easing, triggering profit-taking and a partial unwinding of the war-related risk premium.
A strong rebound followed this as markets reassessed global inflation expectations and central bank policy direction.
By June 16–17, prices had stabilised in the Rs 455,000–Rs 458,000 range, signalling a pause after extreme volatility.
Iran peace framework eases safe-haven demand
Analysts say the sharp movements highlight how quickly bullion markets shifted from fear-driven buying during the Iran conflict to recalibration after diplomatic progress between Washington and Tehran.
During the height of tensions, gold surged on concerns over potential disruptions to oil supply routes through the Strait of Hormuz and broader regional escalation risks.
Oil slump reshapes gold sentiment
International gold markets have also entered a consolidation phase. While geopolitical tensions have eased, easing safe-haven demand, falling crude oil prices have strengthened expectations of lower inflation.
They have also reduced the likelihood of further interest-rate hikes and provided underlying support to bullion.
Pakistan prices track international bullion
In Pakistan, gold prices remain closely tied to international movements and exchange rate fluctuations.
Traders report that local demand has softened at elevated price levels, although investment interest remains intact due to currency volatility and broader economic uncertainty.
Market participants expect gold to remain range-bound in the near term.
Its future direction would depend on developments in the Iran peace process, global oil prices and upcoming monetary policy signals from major central banks.
For now, the bullion market appears to have shifted from crisis volatility into a consolidation phase.
